Do Alabama Title Loans Affect Your Credit Score?

June 15, 2021 | Mason Roberts

Alabama title loans and credit score

If you’ve been working hard to get your credit score higher, you might be curious about what to do in case of an emergency where you need to get money quickly without hurting your score. One of the most accessible solutions is getting Alabama title pawns.

However, many people wonder, "Do title loans affect your credit score?", and the answer is no, acquiring Alabama title loans does NOT affect your credit score. You can get the money you need quickly without worrying about any impact on your credit score.

At some point throughout people’s lives, everybody will need to get their hands on some amount of cash fast. For some people, that might mean asking family or friends, but for many, it involves finding a lender that can help them in their time of need.

Whether the money is needed for emergency medical issues, unexpected bills, or something else that has come up and needs to be resolved quickly, second chance loans for bad credit in Alabama can help people get back on their feet without affecting their credit score.

All You Should Know about Title Loans and Your Credit Score

What Are Title Loans?

Title loans are short-term loans that are based on the value of a vehicle. A lien will be placed against the car title and held by the lender until the loan has been repaid in full.

In simple terms, a title loan is considered a secured loan because it is using collateral to secure the loan amount, and it’s your title that serves as collateral. Secured loans don’t typically require perfect credit, because there is already a guarantee.

However, unsecured loans will require a credit check, because there is nothing to be used for collateral in the case that the loan should default. Unlike these types of loans, Alabama title loans are based on the collateral of your vehicle and normally don’t require a credit check.

When somebody inquires about a title loan, they are actually looking to borrow money off the value of their car. According to the inspection performed by a representative at Alabama Title Loans, Inc., the amount they can receive will depend solely on the vehicle’s worth.

Can You Keep Your Vehicle with Title Loans?

Many people don’t know that they can still drive their car as they normally would while having a title loan. In fact, one of the first questions somebody has is ‘Can they keep their vehicle while having Alabama title loans?’

The answer is yes, and you will always have access to your car the same as before receiving a title loan.

Just make sure you adhere to the payment agreement and follow the guidelines of the title loan.

What About Bad Credit?

Somebody who has been through some difficult times in their life may have bad credit and still need to get a hold of some cash fast.

Anybody can apply for title loans regardless of what type of credit they currently have, including bad and even no credit at all!

What Is a Lien-Free Title?

Both a clear and lien-free title means that the person inquiring about a title loan doesn’t have any judgments or other loans currently on their vehicle.

It also means that somebody owns their car outright and doesn’t owe any money to another lender for the exact same vehicle’s title.

Does a Car Title Need to Be in Your Name?

In order to get a title loan, the vehicle’s title must be in the applicant’s name. If the car title is not currently in your name, you’ll need to go to the DMV and have the title transferred to your name prior to requesting the title loan.

Man getting an Alabama title pawn

If the title is held by two names, then both people will need to sign for the title loan unless there is an ‘or’ stated in between the names on the car title.

Where Can You Find a Title Pawn Lender Near You?

You might be wondering, “How to find title pawns near me?” There’s no need to be concerned about that with Alabama Title Loans, Inc., as we have multiple locations throughout the state. You can find the location nearest to you by visiting the Locations Page or filling out a short online form on the website.

After you submit the form, a representative will contact you back to go over all your details, answer any questions you may have, and tell you where the nearest locations are.

You will need to provide the following items:

  • Driver’s License or State Issued ID
  • Lien-Free Title to Your Vehicle
  • Your Vehicle for Inspection

Once everything has been completed, you could have the money you need in as little as thirty minutes. You can also go directly to an Alabama Title Pawn store if you don’t have access to the internet.

Get Started Today!

Alabama title loans don’t affect your credit score, and they can help you when you need to get a hold of some cash quickly for unexpected emergencies. Just make sure you stick to the agreed upon payment schedule, and everything will be smooth sailing! And if NOW is the right time to get your title pawn in Alabama, don’t hesitate to get started by filling out a short intake form on our website.